Goodchilds Market Update July 23
Due to rises in the Bank of England base rate, mortgage rates are rising to levels not seen for over a decade. This has led to a cooling of the property market. The steep rise in mortgage interest rates and anxiety about the prospect of an economic downturn sent new house buyer inquiries to an eight-month low in June, according to a survey of estate agents. But we are still seeing properties sell and we have put together a few tips to help you sell in what is becoming a buyers market again…
Valuations and asking prices
From 2020 to 2022 house prices in the Telford area jumped by 20%. Thats an unprecedented increase from the 2-3 % growth seen year on year from 2009. Boosted by a post pandemic rush from buyers, the surge in demand and dwindling supplies led to a sellers market. Now as the market cools pricing your propery correctly is essential.
Through 2020 – 2022 there were around 300 properties available to buy in Telford and Wrekin at any one time. There are now 1000 +. Buyers now have much more choice of properties to purchase whilst the amount of buyers is falling due to affordability. This is bringing prices down. It is estimated that prices will fall between 5% and 12% by the end of 2023.
To sell your property during a falling market it is essential that you ask your chosen agents for honest valuations. We are seeing more and more examples of agents overvaluing at the moment due to lack of knowledge of the housing market and its reaction to the rise in interest rates. Many local agents are also overvaluing properties to obtain your instruction to sell.
The agents then repeatedly ask for price reductions until the property hits a point where offers are recieved. This can however mean you end up taking a lower price than if the property was correctly priced to begin with. At Goodchilds, in comparison to other local agents we have far fewer price reductions and far less slow moving properties because of our honest ‘ finger on the pulse’ valuations. We look at % changes since you purchased your property and factor in improvements you have made. We then look at comprehensive comparable evidence and market conditions to ensure your property is priced correctly.
Make your property stand out
In a market where buyers are fewer, and they have more choice, you need to make your property stand out from the crowd to attract interest. Heres a few tips to improve your chances of attracting a buyer in…
- Make sure its priced attractively
- Tidy up the property frontage, neatly cut lawns, hedges and tidy exterior woodwork etc. (Kerb Appeal Counts)
- Make sure your agent has bright inviting photos, a video tour and drone shots if your property sits on a good plot.
- Keep an eye on other properties within a mile of yours to make sure yours remains competitive.
- Visit new homes sites to get inspiration on how to present the property internally to make it appealing.
- Declutter to show off the space.
Be Flexible
As the saying goes in estate agency, ” a property is only worth what someone is prepared to pay.” Whilst nobody likes to give something away, the times of having people fighting over properties forcing achieved prices up are fading. Properties are also more likely to be downvalued by lenders due to predicted slumps in house prices.
Our advice would be to not get hung up on price. An agents valuation is only ever an oppinion. The value of your property is determined by the market. The market is made up of all the buyers in the area and utlimately, its their offers that determine the value. Dont take your valuation as gospal and be flexible in what you are prepared to accept for your property. The likelyhood is that if you accept a reduced offer, you will make a saving when offering on your next property.
Sell your house during viewings – Even better let the agent do the viewings for you.
In a hot market, you could pretty much leave prospective buyers to look around your home themselves and still sell it. In a cool market, however, you need to positively sell your home to buyers. Try to be as welcoming and helpful as possible which can help make all the difference.
When showing prospective buyers round draw attention to the best features of every room. For example, that it gets plenty of natural light, has great views or has plenty of storage. Talk about how you use and enjoy the house. For example, that the kitchen is great for parties, or how the dining room can accommodate all the family at Christmas.
Also talk about the area, especially if your viewers are new to the area. Mention the great neighbours, good schools and convenient local shops.
Ask whether your viewers have any questions about the house or the area.
Choose the Right Buyer
It’s always important to choose the right buyer but in a slow market, it’s especially important. Remember that if you want to sell you need a buyer who can buy! In a slow market, it’s not ideal if your buyer has yet to sell their house (or if it’s not even on the market) as their house could be slow to sell too.
Choose to sell to a first-time buyer, a cash buyer or a buyer, whose house is already sold, if you can.
Feedback, Feedback, Feedback
In a slow market, it’s especially important to try and get feedback from viewers and use that information to make improvements. This is especially important in a situation where you don’t get any offers for your house.
Ask your estate agent to help with this. Try to find out what prospective buyers liked about your house and what they didn’t like. Try to find out why they didn’t make an offer. Was the price too high or was there something they didn’t like? Ask them what they thought the property was worth!
By following the above or using an agent that works to the above core values, you should achieve a sale in a falling market.
At Goodchilds we pride ourselves in being professional and honest from valuation to completion of your property transaction. For a realistic valuation with honest advice, then please give us a call on 01952 701019 or visit the link below to our online valuation portal. https://www.newtonfallowell.co.uk/goodchilds-telford/valuation/
We look forward to hearing from you..
Nick Labocha
Director
